The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-12-31

THE PACIFIC COMMISSIONERS
MAKE THEIR REPORT.

Messrs. Anderson and Littler Sign the
Majority Report and Mr. Pattison
That of the Minority-The Union
Pacific Road and Branches the First
Considered.
WASHINGTON, Dec. 30-Under the act.of
Congress approved March 3, 1887. entitled
IAN act authorizing an investigation of the
books, accounts and methods of railroads
which have received aid from the United
States and for other PURPOSES the Presi-
dent appointed Messrs. Robert f. Pattison,
OF Pennsylvania; e. Ellery Anderson, of
New York, and David +. Littler. of Illinois,
commissioners to carry on the
Investigation. Two reports have
been submitted to the President majority
report by Messrs. Anderson and Little and
minority report by Mr.. Pattison. The
majority report opens with statement of
the methods pursued by the Commissioners,
showing the laborious nature Of the work.
The commission examined the dierctors
and officers of the respective roads and all
witnesses whom they judged possessed of
knowledge of the subject matter of the in
vestigation.
THE UNION PACIFIC.
The Union Pacific railway is first consid-
ltS OOldl ullltdSe, eAcluSlN6 OIL DfdDCDeS,
being stated at 1,S15. II miles, including the
railways formerly known as the Kansas
.Paeific, and Denver Pacific, while the total
mileage of the connecting branches, accord
ing to the companys report for 1886, is
2,761.9S miles. 1t is explained that the
United States subsidy bonds did
not apply to the entire leugths of these
roads, the branch lines being excepted from
the lien. The commission has taken great
deal Of evidence relating to the cost of the
branches, their operation and their effect
on the system. The almost unanimous
voice of all the witnesses examined de-
clared that the branch roads add largely to
the earning power of the Union Pacific
railway. Many of them go SO far as to as
sert that without these feeders the Union
Pacific would be bankrupted in a few years
NOT sELF-SUPPoRTING.
1t appears from the account of these
branches that, having regard only to the op-
GRAFTON of the branches themselves, some
of them do not pay the expense of opera
tion. Many of them do not earn enough to
pay the interest on their cost in addition to
the expense of their operation, and only a
few of them succeed in earning a surplus
beyond fixed charges But the Off
GERS of the road and many other intelligent
witnesses declare that the circumstance has
no bearing on the question whether the
branches are or are not an advantage
They assert that III addition to the actual
earnings derived from local operation there
is a large profit derived from earnings of
all business interchanged between the
branches and main road by reason of the
haul over the main road. In the opinion of
the commission this statement is correct
and the argument unanswerable.
THE REAL QUESTION.
There is difference of opinion among
(NxkrN.v .s,-el nvs1 10 h.
value of these branches, but the ma
jority argue that the branches exist, but
the money spent in their purchase or con-
struction cannot be reclaimed, and the
practical question is whether their opera
tion, irrespective Of their cost, is or
is not an advantage. The Union Pacific
railway is itself holder of large major
ity of their bonds, and could effect no i'm
portant saving of interest payments by dis
continuing them But as a matter of fact
the investment in branch lass taken in its
entirety, does pay a las1S surplus The
evidence of several with rises examined on
this subject is cited in support of the posi-
tion of the majority of the commission,
among whom were Il; =
Railroad and Banking Company, oe
Georgia, who served as government director
in 1885, and declares that the existing
system of branch lines has been the actual
salvation of the road.n Charles f. Adams
and x-Gov. Warren, of Wyoming Terri
tory, the opinions of the United States
Commissioners of Railroads, Messrs. French
and Armstrong, and the reports of the
government directors are quoAd to the
same effect.
EVERY MILE WORTH THOUSANDS
1t is also urged that ''apart from the
mere financial question, the communities
served by the branch roads demand their
construction and extension. They are of
immense service to farmers, settlers and
miners, and transform the barren
orairies into grain-bearing farms. Every
4 pile of road adds many thousands of dollars
o the value of the lands adjacent. The
,licy OF branch line development is bene-
.ial to the railroads, to the local commu-
ties and increases the solvent power of
lie corporation. 1t is not sufficient
lswer to the conclusion that this
,licy has been abused by improvident and
en- fraudulent expenditures in the past.
he remedy is to punish the wrong-doer and
,t to suppress the natural growth of the
ilroad
MUTUALLY DEPENDENT.
"The conclusion is reached that the
anches and main line are mutually de-
ndent on each other for support and de-
~ ,lopment, and that, through their union,
"a t1 ictlCoChO a NooOiJ 6iSehoSi iNioVANo .
rning power than would either the
II 'anches or the main line itself if they were
smembered. The net earnings Of the
stem taken for the past two years, by
| hich is now meant their gross earnings,
IS their operating expenses and taxes,
i've average, $9,S00,000 of which sum
i.2O0. 900 should be credited to the parent
A ne, aud 81 ,600, 900 to the branch system.
.'he actual value of the system, as gathered
from Col Morgan's intelligent examina-
ton. based both on the cost
of construction, ON the increased value
of the Terminal facilities and the right-of-
way, and also on the close and critical ex-
animation OF the earning powers of the main
line, may be approximately stated at $780,
100000.
A TREMENDOUS TOTAL
1.-THE total fund debt of the Union Pacific
Railway Company on Dec. 81, 1886, eXclu-
sjve of the obligations to the United States,
| is placed at 1881 1869, l27 80, of which S33,
S5320O0 was prior to the United States
l tatutory lien. The total Of the subsidy debt
{ the Union Pacific and Kansas Pacific
/ maturity, including principal and inter-
jsst. and deducting the credits of
both companies in bond and interest ac-
count, November /, 1857, Is stated at SIS
36g. .T4l CO The average date of maturity
of the bonds of both companies is July,
1907"
The report adds that it is universally con-
ceded by every intelligent person who has
Il. n F..ta. nH.a vail